Variable Mortgages Definition

Adjustable rate mortgage (ARM). An adjustable rate mortgage is a long-term loan you use to finance a real estate purchase, typically a home. Unlike a fixed-rate mortgage, where the interest rate remains the same for the term of the loan, the interest rate on an ARM is adjusted, or changed, during its term.

variable-rate mortgage definition: noun abbr. vrm See adjustable-rate mortgage.. Words that contain ‘variable rate mortgage’ in their definition. ‘variable rate mortgage’ has been looked up once, is no one’s favorite word yet, is on no lists yet, has no comments yet, and is not a.

variable definition: Variable is defined as something inconsistent or able to change. (adjective) When you have an adjustable rate mortgage and the interest rate can go up or down, this is an example of a variable rate mortgage. When the food at a rest.

variable rate mortgage meaning: a loan for buying a house on which the interest rate can change over time Definition of "variable rate mortgage" – English Dictionary. A variable rate mortgage is a type of home loan in which the interest rate is not fixed.

Open or Closed. Fixed or Variable. Canadian Guide to Mortgages Open Mortgage Definition : An open mortgage is a mortgage that permits repayment of the principal amount at any time, without penalty. open variable rate mortgages : Open variable-rate mortgages. Best 5/1 Arm Rates. MANY confused consumers could end up paying thousands of dollars extra on their home loan because they do not understand basic.

Index Rate Definition Best 5/1 Arm Rates These lenders are technology leaders and can meet your mortgage needs completely online. The first national lender to launch mobile mortgage lending. arm rates are initially fixed for 5, 7 or 10 years. Life-of-the-loan rate changes are capped at 5% above your initial fixed rate. Rocket Mortgage review.The monthly base rate, which is officially called the index rate, is supposed to give insurers, regulators and others a simple way to make apples-to-apples comparisons of plans’ average prices.Arm Mortgage 5 And 1 Arm With the 5/1 ARM, any rate improvement would be realized within a year, when the annual adjustment is due. Of course, if the associated index was simply rising over time, it could mean a 1% higher mortgage rate year after year, pushing that 2.5% rate to 5.5% after three years, and even higher.Adjustable-Rate Mortgage A 5/1 adjustable rate mortgage (5/1 ARM) is an adjustable-rate mortgage (ARM) with an interest rate that is initially fixed for five years then adjusts each year. The "5" refers to the number.During the home buying process, you’re likely to be introduced to a wide variety of mortgage types. While it might seem logical to select a mortgage based upon what your friends or family have chosen, it’s more important to weigh whether or not a mortgage plan fits you and your individual lifestyle.

A variable rate mortgage often has a lower initial interest rate than a fixed mortgage. With a variable rate mortgage, however, the initial rate changes after a period of time. Once that period is over, the interest rate of a variable rate mortgage rises or falls depending on an index. Learn about adjustable rate mortgages (ARMs), home loans.

As the graph on the right illustrate, 69% of our loans are variable, demonstrating the asset sensitivity. Now on Slide 12, our regulatory capital ratios are above the regulatory definition of well.

. fixed interest rate for five years followed by a variable interest rate afterward, which resets every 12 months. With this mortgage product, the borrower is offered a 2-2-5 interest rate cap.